And they freeze your bank account/s, what happens to any state benefits that get paid into them as that is the only money I have to live on for me and the kids and they take that long to sort payments out anyway, I'm scared I'll be left with nothing to support us.:the bank may freeze the accounts but not always. In the statement of affairs section 5.4 you have to tick a box if your incomeis paid in, and state the balance: you should cl;eaerly state £X credit or £X overdrawn.
If account is used for income and is in credit, OR will send letter saying account may stay open BUT it is up to the bank. If the bank decide to freeze OR will fax bank instructing them to release credit balance monies to you, if the money is neccessary for day to day living expenses.
If accountis overdrawn as of bankruptcy order date, it is a debt in bankruptcy so cant be repaid and likely account will be closed.
If you hold a basic bank account, would they still freeze that if you can prove only benefits go into it?think i haver answered this above. some banks will eg abbey and natwest dont want to operate accounts for undischarged bankrupts
How long do they freeze the accounts for?sometimes until they hear from OR that the OR has no further interest in the account (ie willnot be claiming money in there as an asset) or account is closed if it is the banks policy.
TroubledSoul wrote: »
I have been assured that the OR does not close this account or freeze it,
user55 wrote: »
The OR doesn't freeze or close any account - it's the banks who do that when they are informed of your bankruptcy. The OR can tell the bank they have no objection to you keeping a particular account, but even then it's still up to the bank.
viii Post office card account A post office card account is operated by Citibank International PLC through the post office and can only be used to receive benefit, state pensions and tax credit payments. There is no overdraft facility on this account, and no other payments, such as wages, can be paid into it. No credit checks are undertaken when the account is opened. The official receiver will therefore have no interest in the balance of such an account and should not take the cash card for one of these accounts from a bankrupt.
But be careful - they'll impact your credit score
This week's MSE Forum highlights
For students, teachers & parents of students